Brazil is the country where the dollar lost the most value in 2022, according to a survey by Economática that compares currencies from 25 countries, between emerging and developed countries.
Since the beginning of the year, the real has already accumulated a rise of 6.63% against the US currency. Following Brazil in the list of countries where the American currency depreciated the most, comes Peru (-5.66%), Chile (5.18%), countries in the euro zone (-0.33%) and Mexico (-0 .27%).
Among the factors that have been driving the fall of the dollar in Brazil, experts highlight two main ones: one of them is due to the stock market, the other, due to interest rates.
On the one hand, there is a movement of foreign investors taking money from technology stocks – which suffer more from the rising interest rate scenario in the US –, and directing them to commodities, a sector in which Brazil stands out.
On the other hand, rising interest rates in the country – which already has the highest real interest rate in the world – also attracts foreign resources.
With more dollar inflows into the country, the effect is a greater supply of the currency and the consequent devaluation against the real.
Despite this movement, experts heard by CNN warn that the scenario may change. This capital that enters the country is now called smart money, that is, more speculative, which makes it go as fast as it came. This added to the approach of the elections, can bring more risk in the country and influence the currency quotation.
It is worth mentioning that the Brazilian currency was among the ones that depreciated the most in relation to the American currency last year.
See more in the explanation by CNN economics analysts Priscila Yazbek and Thais Herédia.
*Posted by Ligia Tuon
Source: CNN Brasil
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